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Bankera Loans – Making Crypto Loans Accessible & Easy

Rakshitha Narasimhan

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Source : Twitter

The inner conflict of whether to hold or reinvest is all too familiar to anyone who is a part of a crypto game. It is an intrinsic part of the industry. However, the entire market is in constant motion as it continues to grow and evolve. With recent developments in crypto-based lending, it seems that we’re in for another turn.

For anyone out of the loop, crypto-backed loans are blazing hot right now. It is a market with quite the potential as demonstrated by the value of issued loans of $5 billion. Naturally, there are those who want to take advantage of the lucrative opportunity; thus, lots of platforms joined the party over the past couple of years.

Equally important is the growing interest in crypto lending solutions. However, the average consumer’s insight with respect to crypto-backed loans is often limited; but that’s completely normal given the number of service providers out there. Today we’ll have a comprehensive look at one of those platforms – Bankera Loans.

How Does Crypto Lending work?

Conceptually, crypto-based lending is a relatively straightforward idea. Basically, the whole thing is based on the notion that crypto assets can be collateralized in return for a credit line. Otherwise stated, a borrower transfers a share of crypto holdings (determined by the loan agreement), where it is stored as collateral in a cold wallet.

The two most popular use cases where borrowers use the credit is either for buying more cryptocurrencies (or other assets and thus diversifying portfolio) or using it for one’s needs.

Bankera & Bankera Loans: Overview

So Bankera, which is an alternative to traditional banking services, entered the crypto lending scene in 2019 with a brand new product – Bankera Loans. However, the company has been a part of a crypto market since 2013 via its brokerage platform – SpectroCoin. Additionally, the company offers a crypto-to-crypto exchange dubbed Bankera Exchange.

At first sight, Bankera Loans might seem like yet another crypto lending solution that came into existence during the market’s most lucrative phase. Nevertheless, the team behind the platform took advantage of their know-how and made crypto-based lending more accessible.

So one of the key aspects of Bankera Loans is that the company took a somewhat unpaved road and low-balled the entry limits for a crypto-backed credit. In most instances, the starting minimum that has come to be a standard in the industry is right around $500, which is quite steep, and the team behind the project were aware of this fact. And so Bankera Loans went for an entry limit of just €25, which in turn makes the service so much more accessible and serves a larger amount of consumers.

The platform also provides a variety of Loan-to-Value (LTV) ratios. Fancy lingo aside, LTV ratio is a risk indicator. You can think of it this way: lower LTV means lower risk for the lender, and as you might’ve guessed the concept works the opposite way as well. Bankera Loans offers loan packages with an LTV ratio starting at 25% and going all the way to 75%, which by the way is one of the highest LTV ratios in the crypto loan market at the moment.

While the aforementioned features separate Bankera Loans from the crowd and are its strong selling points, there’s so much more to the platform.  So to omit the boring parts and to highlight the good and the not so good regarding the service, we’ve compiled a rundown list:

The Good

+ 25 EUR minimum loan. The loan can go up to 1 million EUR;

+ 25% – 75% loan to value;

+ You can withdraw and repay your loan in cryptocurrency;

+ The loans are issued for 1 year and the period can be extended;

+ Flexible repayment with no repayment schedule;

+ No early repayment penalty;

+ Paying interest in Banker (BNK) token reduces the interest rate;

+ Loans are issued globally;

+ 24/7 service via live chat and mail;

+ Referral program soon to come. Clients will earn 10% of the interest paid by their referred users on Bankera Loans.

The Not So Good

– Interest rate is higher than average;

– Currently, the only collateral currencies for the 25% LTV are BTC, ETH, XEM, DASH, and for 50% and 75% are BTC and ETH;

– No ‘Earn interest’ system.

As the entire crypto market continues to grow and mature, owners are quite naturally keen on putting their crypto to good use. The crypto-based lending market is happy to satisfy such needs; yet choosing the platform is becoming an increasingly complex task.

Bankera Loans is an excellent option if you are looking to collateralize your crypto assets in return for a credit line. Aside from low entry limit and a wide range of LTV ratios one of the most compelling features about this particular platform is that you can receive the loan in either crypto or in fiat that would be sent to your Euro-based bank account.

At the end of the day, anyone looking for a crypto-backed loan should keep an eye on interest rates (which are often subject to change), LTV ratio, and payment scheduling options. As a final piece of advice, we would like to remind you to never forget to read the small print before taking out a loan or signing up with a particular service.

Disclaimer: This is a paid post and should not be considered as news/advice.

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A Psychology and Journalism graduate, Rakshitha focuses on UK and Indian markets. As a crypto-journalist, her interests lie in blockchain technology adoption across emerging economies.